BuildersOutlook2017issue3

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EL PASO

National, State & Local Building Industry News 2017: Issue 3

BUILDERS A S S O C I AT I O N O F

www.elpasobuilders.com

Realtor.com® Forecasts PostElection Economy to Result in Higher Mortgage Rates While Housing Delivers Slower Gains in 2017 Phoenix housing market predicted to be top out of 100 local metro forecasts

The 2017 housing market will be a year of slowing, yet moderate growth, set against the backdrop of a changing composition of home buyers and a post-election interest rate jump that could potentially price some firsttimers out of the market, according to the realtor.com® 2017 housing forecast released today. The report also predicts the top five housing trends of 2017, as well as home prices and sales for the 100 largest metros in the U.S.

2017 National Housing Forecast The 2017 national real estate market is predicted to slow compared to the last two years, across the majority of economic indicators. Home prices are anticipated to increase 3.9 percent and existing home sales are forecasted to increase 1.9 percent to 5.46 million homes. Interest rates are expected to reach 4.5 percent due to higher expectations for inflationary pressure in the year ahead.

Realtor.com® is forecasting the homeownership rate will stabilize at 63.5 percent after bottoming at 62.9 percent in 2016. New home sales are expected to grow 10 percent, while new home starts are expected to increase 3 percent. The forecast is based on GDP growth of 2.1 percent, a 2.5 percent increase in the consumer price index and unemployment declining to 4.7 percent by the end of the year.

Prior to this month’s election, demographics and an improving economy were laying the foundation for a substantial increase in first-time buyers in 2017, but due to mortgage rate increases over the last few weeks realtor.com® predicts first timers will face new hurdles as they navigate the qualification and buying process. These higher rates are associated

Markets predicted to lead the nation in housing

Western metros in the U.S. are forecast to see a price increase of 5.8 percent and sales increase of 4.7 percent, much higher than the U.S.

with anticipation of stronger economic and wage growth next year, both of which favor buyers. However, higher rates will make qualifying for a mortgage and finding affordable inventory more challenging.

“We don’t expect the outcome of the election to have a direct impact on the health of the housing market or economy as we close out 2016. However, the 40 basis points increase in rates in the days following the election has caused us to increase our interest rate prediction for next year,” said Jonathan Smoke, chief economist for realtor.com®. “With more than 95 percent of first-time home buyers dependent on financing their home purchase, and a majority of first-time buyers reporting one or more financial challenges, the uptick we’ve already seen may price some first-timers out of the market.” Top Housing Trends for 2017 2017’s predicted slowing price and sales growth, increasing interest rates and changing buyer demographics are setting the stage for five key housing trends:

1. Millennials and boomers will dominate the market –– Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers – that will power demand for at least the next 10 years. Although increasing interest rates have prompted realtor.com® to lower its prediction of millennial market share to 33 percent of the buyer pool; millennials and baby boomers will still comprise the majority of the market. Baby boomers are expected to make up 30 percent

of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.

2. Midwestern cities will continue to be hotbeds for millennials – Midwestern cities are anticipated to continue to beat the national average in millennial purchase market share in 2017 with Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, leading the pack. This year, average millennial market share in these markets is 42 percent, far higher than the U.S. average of 38 percent. With strong affordability in 15 of the 19 largest Midwestern markets, realtor.com® expects this trend to continue in 2017 even as interest rates increase.

3. Slowing price appreciation – Nationally, home prices are forecast to slow to 3.9 percent growth year over year, from an estimated 4.9 percent in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percent point or more with Greensboro-High Point, N.C.; Akron, Ohio; and Baltimore-Columbia-Towson, Md., experiencing the largest gains. Likewise, 46 markets are expected to see a slowdown in price growth of 1 percent or more with Lakeland-Winter Haven, Fla., Durham-Chapel Hill, N.C.; and Jackson, Miss., undergoing the biggest shift to slower price appreciation.

4. Fewer homes on the market and fast moving markets – Inventory is currently down an average of 11 percent in the top 100 metros in the U.S. The conditions that are limiting

home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14 percent – or 11 days – faster than U.S. overall.

5. Western cities will continue to lead the nation in prices and sales – Western metros in the U.S. are forecast to see a price increase of 5.8 percent and sales increase of 4.7 percent, much higher than the U.S. overall. These markets also dominate the ranking of the realtor.com® 2017 top housing markets, making up five of the top 10 markets on the list (Los Angeles, Sacramento and Riverside, Calif., Tucson, Ariz., and Portland, Ore.) and 11 of the top 25 (Colorado Springs, Colo.; San Diego; Salt Lake City; Provo-Orem, Utah; Seattle. and Oxnard-Thousand Oaks-Ventura, Calif.)

Top 2017 Housing Markets Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s hottest markets. The realtor.com® 2017 top 10 housing markets based on price and sales gains are: 1. PhoenixMesa-Scottsdale, Ariz.; 2. Los Angeles-Long Beach-Anaheim, Calif.; 3. Boston-Cambridge-Newton, Mass.N.H.; 4. Sacramento–Roseville– Arden-Arcade, Calif.; 5. Riverside-San Bernardino-Ontario, Calif.; 6. Jacksonville, Fla.; 7. OrlandoKissimmee-Sanford, Fla.; 8. Raleigh, N.C.; 9. Tucson, Ariz.; and 10. Portland-Vancouver-Hillsboro, Ore.Wash.

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Builders Outlook

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2017 Issue 3

2017 Issue 3

President’s Message

There’s more pressure on our building industry, than ever before. We must build better, more energyefficient houses faster, smarter, more efficiently to meet a moving target of buyers that demand more innovations as standards. As builders, we must do that in areas where there have been or presently are lot shortages, restricted financing, labor shortages (especially after border patrol visits), material delays for quantities needed or lack of inventory by suppliers, permit delays, excessive fees by entities, NIMBY attitudes and restrictions resulting in litigation and delays. The above issues don’t even get into sales, marketing, and product design that must be accounted for, so that our products will be chosen by todays buyers. The problems above, are by no means meant to list all our industry’s issues, but to highlight

Builders Outlook Don Rassette

President, El Paso Association of Builders

many day to day problems of building at this time. I have been and always will be a strong proponent that no one can accurately predict the future, but you can prepare yourself for the future. One of the best ways to prepare, that I have found is to communicate (i.e. share) my concerns with people or groups that might offer solutions. One such “program” to prepare is focusing on promoting construction careers to high school students/young adults and having them team up with local builders. Some of the programs have been funded by corporate sponsorships and/or donations. Some of our professionals have volunteered their time to mentor and share knowledge with the students which may lead to future employment and opportunities on both sides. Oh, by the way, one such “program” is before the state

Building a house, not a big deal, it’s very easy. Right? legislature. TAB is requesting your support on 9 House bills and 2 Senate bills for legislation to enhance career and technical education and workforce training. Are you aware of these bills and what they could offer you, in terms of a larger, a more reliable and a better trained work force. Another bill before the House is HB 1449, a bill which would prohibit cities from mandating linkage fees. This is what I meant earlier when I listed excessive fees by entities as a problem in our industry. Linkage fees are imposed by cities in some other states on new development and housing projects to subsidize low and moderate income housing. The linkage fees are relatively stiff, with an average modifier of $70/square foot. Yes, a 2000 square foot home would have a fee of $140,000 imposed on the project. Compare this to the average sales

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price of a house in El Paso and you can see how excessive and expensive are these fees. These are just 2 areas that I will highlight, at this time. I will always encourage you to share your concerns with those in Austin whose votes might make a difference in keeping housing affordable. Closer to home, are the upcoming local elections. In the city, the Mayor’s seat and District’s 2, 3, 4, & 7 representatives will be determined on May 6th, 2017. As an association member, be prepared to interview and possibly endorse candidates based on their interview and political positions. Details will be announced at our April meetings. If you haven’t already donated to our BUILD PAC; please consider donating to our BUILD Pac, so that our endorsement will make a difference. LET’S PREPARE TO SUCCEED

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Executive’s Message Ray Adauto, Executive Vice President EPAB

The economy under the administration of President Trump has shown some real gusto over the last few months since his election. The stock markets have reached all-time highs with many sectors doing extremely well. Housing has had that uptick as well but there are a few items that need to be talked about that could very well hurt the industry. First and foremost is immigration. The policy of this administration is clear: we welcome legal entry into the United States and will make it harder for illegal entry. The symbolic structure is “the

Builders Outlook

2017 Issue 3

Signs of the economy look good, labor a concern wall” along the Mexico-U.S. border. Immigration is a hot topic putting America first was one big reason President Trump won the election. What the President said in his run for office was that the border is more than a line, it is the embarkation line or our country and that he would protect it with whatever means available to the government. The “wall” will have to be more than concrete and steel because the terrain will require the use of high tech solutions as well as the concrete. So when talking about labor does this new position put builders in peril? With the recent raids on local construction sites it appears that Homeland Security is going after the low hanging fruit. But in effect most of the workers that aren’t here legally know that the risk is always present. The risk for the contractor can be lowered or removed with proper paperwork and subcontractor agreements. The NAHB and TAB have put out immigration policy statements. Our NAHB Chairman Granger

MacDonald has met with President Trump and he is deeply committed to keeping our workforce legal and working. The truth is that contractors on the border will be subjected to higher costs as cheap labor disappears under the new immigration policies. Secondly (and riding on the coattails of immigration) is the looming labor shortage. Construction is not a job that can be taken over by a click of a keyboard. It is on site, it is skilled, and it has to be trained. That’s why we believe so strongly that our labor has to have vocational education as part of a robust educational system. We are short on every level. Carpenters, plumbers, electricians, HVAC all in short supply. We are not training to fill the vacancies of today much less those of tomorrow. We urged our legislature to fund training with these simple fixes: make transportation to training schools from the regular high schools a priority; create a non-college curriculum; and provide insurance coverage for students

while they are on the jobsites. It is proven that not all students need to go to a four year college since statistically over 60% don’t finish is four years. Take that money and go learn a trade and get a great paying job right from school rather than just accumulating loan debt. The labor pool of young students is sufficient to offset any anticipated labor shortage. We have to join the school districts in making training a priority and an exciting fun experience. And we need funding. While we love the current business climate and the potential rewards, it is important to talk about the risks we face. The Association will continue to work to ensure that our labor force is available no matter what the current politics are. For that reason it’s important that you support our efforts at all levels. And it’s important that you prepare.

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National Builder News

2017 Issue 3

Builder Confidence Hits 12-Year High

n Builder confidence in the market for newly-built single-family homes jumped six points to a level of 71 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005. “Builders are buoyed by President Trump’s actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that impacts permitting,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “While builders are clearly confident, we expect some moderation in the index moving forward,” said NAHB Chief Economist Robert Dietz. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.” Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components posted robust gains in March. The component gauging current sales conditions increased seven

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Builders Outlook

points to 78 while the index charting sales expectations in the next six months rose five points to 78. Meanwhile, the component measuring buyer traffic jumped eight points to 54. Looking at the three-month moving averages for regional HMI scores, the Midwest increased three points to 68 and the South rose one point to 68. The West dipped three points to 76 and the Northeast edged one point lower to 48.

The inventory of new home sales for sale was 266,000 in February, which is a 5.4-month supply at the current sales pace. The median sales price of new houses sold was $296,200. Regionally, new home sales increased 30.9 percent in the Midwest, 7.5 percent in the West and 3.6 percent in the South. Sales fell 21.4 percent in the Northeast.

n Sales of newly built, single-family homes continued to expand, rising 6.1 percent in February to a seasonally adjusted annual rate of 592,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “February’s increase in new home sales is consistent with builders’ growing confidence in the housing market,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “Builders are encouraged by heightened consumer activity and by the expectation that regulatory costs will decline in the year ahead.” “The uptick in mortgage interest rates is having a minimal effect on new home sales thus far,” said NAHB Chief Economist Robert Dietz. “Ongoing job creation, rising household formations and affordable home prices should keep the market on an upward trajectory in 2017.”

n Nationwide housing starts rose 3 percent in February from an upwardly revised January reading to a seasonally adjusted annual rate of 1.288 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Single-family production increased 6.5 percent to 872,000 units — its highest reading in nearly a decade — while multifamily starts fell 3.7 percent to 416,000 units. “This month’s gain in single-family starts is consistent with rising builder confidence in the housing market,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “We should see singlefamily production continue to grow throughout the year, tempered somewhat by supply-side constraints such as access to lots and labor.” “The growth in the single-family arena is very encouraging, but may be partly

New Home Sales Rise 6.1 Percent in February

BUILDING

Single-Family Housing Starts Reach Highest Level since Late 2007

El Pa aso

“This month’s gain in single-family starts is consistent with rising builder confidence in the housing market,” said Granger MacDonald, chairman of the National Association of Home Builders

attributable to unusually warm weather conditions throughout most of the country,” said NAHB Chief Economist Robert Dietz. “The modest drop in multifamily starts is in line with our forecast, which calls for this sector to continue to stabilize in 2017.” Regionally in February, combined singleand multifamily housing production rose 35.7 percent in the West. Starts fell by 3.8 percent in the South, 4.6 in the Midwest and 9.8 percent in the Northeast. A drop in multifamily permits pulled overall permit issuance down 6.2 percent in February. Multifamily permits fell 21.6 percent to 381,000 units, while singlefamily permits rose 3.1 percent to 832,000 units — its highest level since September 2007. Regionally, overall permits rose 25.4 percent in the Midwest. Permits fell 10 percent in the West, 10.4 percent in the South and 22.3 percent in the Northeast.

SINCE 1950

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Expert Analysis Elliot Eisenberg Economic & Policy Blog

Recently, Senator Tom Cotton from Arkansas and Senator David Perdue from Georgia introduced legislation aiming to reduce legal immigration to slightly more than 500,000/year from the current rate of one million/year. The explanation given by both senators was that reducing the number of immigrants would shrink the pool of labor, thus raising wages, and hopefully encouraging some of the many Americans who have quit the labor force to return. While sounding plausible, the data does not support this position. Moreover, reduced immigration will bring the US perilously close to a situation it has never seen: near-zero population growth. Per an exhaustive study carried out by the US National Academy of Sciences, immigration does not drive down wages. Rather, immigration was found to have a “very small� and shortterm effect on native-born workers lacking a high school degree. Another study that looked at non-European immigration into Denmark between 1991 and 2008 found that immigrants didn’t reduce wages, and instead freed

Builders Outlook

2017 Issue 3

With Interest Rates So Low, Should the Deficit be Bigger? natives to do more agreeable work. And when only high-tech immigration is analyzed, at worst, studies find that wages of American computer workers and scientists are depressed by up to 10%, but the overall economy is better off by boosting innovation and reducing prices for consumers. While somewhat counterintuitive, these studies demonstrate that rather than taking jobs performed by natives, immigrants create new employment opportunities, and along the way, can push the natives into higher paying jobs. The mistaken belief that immigrants reduce employment opportunities for Americans is based on a false notion that there is a fixed amount of work to be done, and that job gains made by immigrants come at the expense of natives who are displaced. In addition, immigrants often bring skills that are in great demand. For example, at present, there is a shortage of occupational and physical therapists, nurses, construction workers, engineers, metal workers, etc. However, wages in these

professions do not appear to be rising substantially faster than those in occupations where labor shortages are less severe. This is because more construction and metal workers simply cannot be found, regardless of the wage offered. Thus, employers have been forced to cut back on production because of a dearth of skilled labor. This situation helps no one. Separately, ponder this: on average, the working-age population grew by 1.4% per year between the years 1965 and 2015, and economic growth averaged 3%. Assuming current fertility and immigration rates, the working-age population will grow just 0.3%/year between now and 2037. With only 500,000 immigrants per year, the working-age population will grow by just 0.1%/year. And with no immigration, the working-age population shrinks by 0.1%/year. Under these conditions, we will be lucky to see annual GDP growth of 1.5%/year, not to mention declining house prices. House prices would be expected to fall in cities in counties with declining populations, as the

number of buyers would progressively decline. While many Americans fear that immigrants -- in particular illegal immigrants -- threaten their employment opportunities and wages, in almost all situations that is not the case. Frequently, immigrants perform demanding physical work that Americans prefer not to do, and even when that is not so, immigrants often have skills that are in short supply. Lastly, in an economy that is rapidly aging and slowly growing, immigration is the key to population growth. That growth will allow us to avoid a host of painful problems, including declining property values and rising tax burdens that we would be wise to avoid.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.

2017 Issue 3

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Builders Outlook

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2017

spring home decor trends

season of style

If you're renovating or building a new home, look out for the following trends to include, and those to avoid, for Spring 2017. Amelia Barnes, Domain Reporter

dark interior colour as we say goodbye to navy and midnight blues.

what’s

<IN 1. Terracotta

Warm materials such as terracotta tiles will replace currently popular cool and white tones.

"Unlike in the 80s, they aren't used as border tiles. Instead they will have a natural matte finish and be used as feature walls in bathrooms or for cladding fireplaces," says Lauren Macer of Sisalla Interior Design.

"I think that by avoiding terracotta tiles that are too rustic and keeping with a matte finish, this trend could add character and warmth to interiors again."

"Dark green as a paint colour for rooms such as a bedroom creates a wintery Scandi backdrop for tan leathers, reindeer furs, brass lamps and natural linen," Macer says.

2. Cork

You heard it here first – cork is making a comeback.

Not only is cork a stylish material idea that adds warmth and texture to spaces, it's also ideal for absorbing noise in our increasingly large, open plan homes. "It's used in coffee table bases in combination with stone tops, and as solid cork stool or side table," Macer says.

"I predict cork could be used to clad entire walls in the home office and used to pin notes to."

3. Dark green

Dark shades of green will become the new must-have

"Used in a feature armchair or cushions and decor items as an accent, it adds depth and can bring in the colours from the outdoors." 4. Upholstered bedheads

Beds will change dramatically in 2017, with upholstered bed heads set to replace the timber bed frames currently dominating the market.

"They've been a staple in luxury hotel bedrooms and celebrity homes for a while, but now we're all falling head over heels for the bedhead trend," says Emma Blomfield, stylist at online homewares retailer TheHome.com.au.

"Whether you opt for the classic model in neutral colour with buttons, or a plush one in velvet, a

Builders Outlook • Issue 3 • 2017

1. Copper

Our experts almost unanimously agree that copper and rose gold will be out by 2017.

"This may not mean listing the 65 inch flat screen on Gumtree, but we will seek to create havens of calm and tranquility, whether it's a bedroom or a nook we can escape to, even if it is to lazily scroll our Instagram feeds in peace."

Relaxed furniture and materials will follow suit, from deep sofas with linen slip covers, to oversized love seats, day beds, Icelandic sheepskins, chunky knit wool rugs and floor cushions.

6. Jewel tones

While pastel shades of pink and blue are currently having their day in the sun, they will soon be overtaken by jewel tones inspired by metals, space, stars, clouds and the cosmos. "Metallics, metals, raw-cut quartz, Lucite and opal will add a dash of sparkle and interest," says the Nathan + Jac team.

"X-ray materials, transparent fabrics, floaty silks and sheers will create a lightness and soft romantic element to this trend, which embodies an optimism for where we have come from and where we are headed."

OUT>

4. Fiddle leaf figs (pictured at left)

Not only are consumers arguably tired of the fiddle leaf fig's look (and increasingly

5. Escapism

"With an ever-increasing amount of time spent in front of a computer or smartphone screen during the day… there will be a greater desire to create spaces in our lives devoid of digital distraction," says the team at Nathan + Jac.

Photo: Mint Afternoon

Once a feature of every magazine spread, the fiddle leaf fig will soon be substituted for a new statement indoor plant.

bedhead is an easy way to update and add instant glamour to a bedroom."

Homes with nooks and places to retrieve will become more popular as humans react to our increasingly technological lives.

"We have all seen the 'Keep calm and …' posters and they have had their day," Macer says.

"As a material, copper is beautiful and will always be in style in some way or another," says the Nathan + Jac team.

"However, the oversaturation of cheap and shiny imitation copper just ends up looking like you've tried too hard, and by doing so, you've already missed the boat."

In its place, a more industrial aesthetic is anticipated. "Warm metals like copper, brass and rose gold will continue to be on trend for autumn/winter 2016, but as we move into summer 2017 you'll see a shift away from this super polished look," says Diane Cocksey, Senior Interior Decorator at Freedom.

"I expect you'll see a more industrial aesthetic, with black steel and burnished metals taking over the home."

2. Marble

With marble homewares all the rage in the mass-produced homewares market, we can soon expect a sharp decline in interest.

"Marble has had a good run, but it's time for a change," Cocksey says.

"Look forward to raw, earthy textures like timber, clay and wicker." 3. Quote artworks

After years of popularity, consumers will predictably move away from quote artworks. "[They're] so cliché," says the Zwei interiors team.

frustrated by the high prices and wait periods) it's also proven difficult to keep alive in southern Australian climates given it's native to parts of western Africa.

"The staple indoor plant needs to have an update. Move over fiddle leaf figs, the olive tree is coming," Blomfield says. 5. Open plan living

Defined living spaces are returning to modern homes as consumers seek more private home layouts.

"As people have now lived with the open plan living areas incorporating kitchen, living, dining and even study areas, they have found problems with acoustics and cooking smells through the space," Macer says. "The living, kitchen and dining areas could be located around central courtyard, breaking up the large open space." 6. Subway tiles

Modern bathrooms and kitchen commonly feature the humble subway tile due to the affordable price point and its versatile look. However, the proliferation of this look will see its popularity decline. "We have seen them at our local cafe and basically they're everywhere," Macer says.

"A beautiful option for a kitchen splashback is a "finger" or "kit-kat" tile. Long and thin, they look great laid in vertical or horizontal rows."

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Builders Outlook

2017 Issue 3

Lending Banks Up Pace of Construction Lending

Two-Year Trend Expected to Continue through 2017

The construction and development (C&D) lending category for U.S. banks was once again the most rapidly growing loan category in 2016, following a year of outsized lending growth in 2015. Bank's C&D lending surged almost 14% in 2016, topping 13% growth in 2015. This compares with total loan growth of just 5% in each of the two years prior to that, according to data from Kroll Bond Rating Agency (KBRA). C&D lending among banks remained strong despite a slowdown in many other lending categories, particularly in the second half of the year. Growth slowed considerably for many other lending categories, notably residential mortgages, auto and commercial and industrial (C&I). After posting the largest percentage lending upsurge in this category during 2016 of 58%, overseas banks with US branches appear to be backing off making loans in this category this year, decreasing their holdings in this category in 2017 to pre-2016 levels. US-based banks posted a 12% lending increase, with that growth unevenly split between large and small banks - 8% growth in C&D lending vs. 15% growth respectively. Given considerable competition and pricing pressures in most loan categories, bankers may be tempted to ramp up their C&D lending, a comparatively higher margin, but also higher risk loan product according to KBRA. However, banks still appear to be mindful of the painful lessons from the recent past.

Even with the surge in lending over the past two years, C&D exposure for the bank industry remains below pre-2008 financial crisis levels, KBRA added. For all banks, C&D loans represented 3.4% of total loans as of year-end 2016 compared with a peak level of 8.4% as of year-end 2007. Regulatory scrutiny of C&D and commercial real estate (CRE) exposure appears to have intensified over the last year with regulators reiterating “guidance” on total concentrations. Regulators are carefully reviewing underwriting, stress testing and monitoring practices, as well as reiterating regulatory guidance on C&D and CRE concentrations. Given the continued C&D lending levels, bank regulators are still expressing concern this year. Just this week, the Federal Deposit Insurance Corp. issued a new report on credit risks trends and supervisory expectations. “The FDIC recognizes that many institutions manage concentrations in CRE loans well. History, however, has also demonstrated that CRE, particularly the acquisition, development and construction (ADC) subset, is susceptible to cyclical, competitive and other, sometimes unanticipated, factors that can quickly knock supply and demand out of balance, ultimately resulting in significant losses for many institutions,” the FDIC noted. The FDIC is particularly concerned for small community banks. In fact, the FDIC Community Bank Study showed that, over a 26-year period, such small community institutions specializing in CRE lending had a failure rate of 2.25 times that of the average community bank.1 Construction Industry Executives Expect Increased Activity in 2017 Meanwhile, the banks' clients,

construction industry executives, have entered 2017 with increased optimism for continued nonresidential construction activity, according to a recent survey of industry contractors and equipment distributors by Wells Fargo Equipment Finance, a subsidiary of Wells Fargo & Co. The survey’s primary benchmark for measuring construction industry contractor and equipment distributor sentiment, the Optimism Quotient (OQ), reached its third highest reading in 20 years with a very positive 123 for 2017, a marked increase over the 2016 reading of 108. According to Wells Fargo, an OQ score greater than 100 suggests strong optimism for increased local construction activity versus the prior calendar year. “An OQ reading at this level leads us to believe that the industry will continue to build on the momentum generated over the last few years,” said John Crum, senior

vice president and national sales manager of the Construction Group at Wells Fargo Equipment Finance. “Contractors have increasingly improved their businesses and this year looks to provide more opportunities to do that again.” A growing number of executives believe the industry will expand in the next two years, with 84% of executives expecting moderate to significant expansion. A big change from last year when only 62% expected expansion. With construction execs brimming with optimism, banks are expected to increase their C&D lending, at least through the first quarter of 2017. From the end of the year through Feb. 22, US banks increased their outstanding C&D loan balances from $297.9 billion to $303.9 billion - on pace for annual increase of 12%, according to the latest Federal Reserve bank asset numbers.

2017 Issue 3

11

Builders Outlook

El Paso Development News Builders Outlook 2016 Issue 9 www.elpasodevnews.com

Massive East Side Retail Center Proposed

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By Armando Landin Far East El Paso could be in line for one of the biggest retail and entertainment centers the city has ever seen, according to plans for a new center at the Americas Interchange. Plaza Del Rey would have a total of 2.8 million square feet of usable space if built as currently planned, including 1.68 million dedicated to retail alone which includes a proposed outlet mall. Developers for the site envision an enormous retail area that swoops around the outside of the development surrounding an inner area with restaurants, entertainment options, and hotels. The site plan shows a total of four hotels, all located nearest to the Interstate 10/Loop 375 interchange. The plan includes a total of just under 500 hotel rooms at the development. To the southwest of the hotels, an entertainment and restaurant district would take shape. The site plan includes large ponds with spouting fountains lined by a total of ten restaurants. More restaurants would line Americas Avenue, the frontage road to Loop 375 south of I10. Entertainment options in the plan include a movie theater, an unspecified "entertainment" building, and a Topgolfstyle driving range. Retailers line the southern boundaries of Plaza Del Rey in a general power center layout, with major anchors surrounded by smaller stores and shops. Two major anchors have their own spot along Americas Avenue in the plan. Towards the northeastern side of the project, the developer envisions an outlet mall with more than 600,000 square feet of retail space alone. More restaurant and retail spaces line the areas along Gateway East. Additionally, the plan dedicates 99,000 square feet for grocery, 31,400 square feet for fitness, and 8,400 square feet for bank uses at the 300 acre project. At a total of 1.68 million square feet of

Towards the northeastern side of the project, the developer envisions an outlet mall with more than 600,000 square feet of retail space alone. More restaurant and retail spaces line the areas along Gateway East. retail space, Plaza Del Rey would certainly be one of the largest shopping center projects ever built in El Paso. In comparison, Cielo Vista Mall contains around 1.2 million square feet of leasable space while the Fountains at Farah has about 600,000 square feet. The project's website cites the combined population of El Paso and Juarez as a reason for starting the development, stating, "Together with the surrounding areas, the cities form El Paso–Juárez, the second largest binational metropolitan area on the Mexico-United States border with a combined population of over 2.7 million people." The entire development surrounds the existing Texas A&M AgriLife Research Center, currently surrounded by the vacant land. There is no timeline for construction of the project, and the site plan was most likely created for illustrative purposes and is subject to change, particularly if the land is sold to another developer. West Retail of El Paso is the developer on the project. For more information, visit the West Retail website: www.westretail.net

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EPAB Membership Builder members as of April 1, 2017

AT Architectural Designs Elsa Taracena Accent Homes Mark Dyer/Raul Chavez Bain Construction Scott Bain Bella Homes Leti Navarrete Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers Custom Dream Homes Leti & Javier Navarrete D. R. Horton Homes Jaime Gonzalez Dawco Home Builders Walter O. Lujan Deal-2-Deal Homes dba Deal-2-Deal,LLC Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Baquera Donald Ward Builder, Inc. Donald Ward E. Valencia Land Development LLC Eddie Valencia Edward's Homes, Inc. Eduardo Fernandez EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy GMF Custom Homes, LP Frank Torres Guel Construction Rudy Guel Hakes Brothers LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry Icon Custom Home Builder, LLC. Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Kayton Lee Residential, Inc. Brianna Barnes LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Metro Homes, Inc. Fernando Torres, Judith Arrunada, Millennium Homes Dan Ruth New Horizon Builders Georgiana Garcia Pacifica Homes, Inc. Juan Jose Vasquez Palace Homes, Inc. Robert Diaz Palo Verde Homes Edgar Montiel

2017 Issue 3

Updated every month, here is a list of the 2017 EPAB Membership. Remember to please do buinsess with fellow members.

Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Santana Custom Homes Fernando Santana Southwest Land Development Serv. Doug Schwartz The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp. Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Villagi Homes, LLC Kristi Eddings Will Harvey Development Will S. Harvey Winton/Flair Homes Herschel Stringfield

Associate Members as of April 1, 2017

84 Lumber Ernie Chavez ABC Supply Co., Inc. Larry Eck Acme Brick Company Vanessa Rocha; Steve Bush Adams Moulding & Lumber Tom Swahlen Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Atrium Homes Ricardo Bocardo Jr. Bank of Texas Ray Owen Barnett & Bennett Construction Ben Trzyna Baron Supply David Trammell Barragan & Associates Benito Barragan Barrett Airworks Alexandro Castro Beasley, Mitchell & Co., LLP Brad Beasley BMC Select Jaeson Iovinella Boise Cascade Mike Flores Bonded Builders Home Warranty Grp. Bill Deal Border Solar Javier Ruiz Builders Source Appliance Gallery Kathy Rose, Sandra Lucero C. D. Lee/Britton Insurance & Bonding Anthony Landavazo; Lisa Daniels Cabinet Masters Mike Robles Capital Bank, SSB David Ortwein Cardel Design Group Lorraine Huit Casa Ford & Casa Nissan Luke Lowenfield CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Chaparral Materials, Inc. Kevin Fortin City Bank Texas Bob Kotarski City Lights Thomas Brown

Cognent, Inc. Martin Paredes Conde, Inc. Conrad Conde CQC Testing and Engineering, LLC Jaime Rojas Dal-Tile Joseph Cepeda Demcon Disposal Management, LLC Aby Escorza Dempsey, Cooper & Lane, LLC Richard T. Dempsey Dorney Security John Dorney DWS Building Supply Sabrina Voorhies E.F. Building Materials, Inc. Efren Fraire Eagle Roofing Products Scott Aguilar El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Randi Cabrera El Paso Star Ready-Mix Concrete Inc. David Armendariz El Paso Times Jose Molina El Paso Truss Luis Mendiola El Paso Winnelson Rene Goldfien Ferguson Enterprises Inc. Albert Holguin First Light Federal Credit Union Lorenzo Revelez Firth, Johnston, Bunn & Kerr Jay Kerr Foxworth Galbraith Lumber Bret Thompson Franklin Building Materials Ricardo Aguilar; Cristina Sheldon GCC Sun City Materials, LLC Victor Tito Marquez GECU- Greater El Paso Credit Union Brenda Aguirre GEPAR-Greater El Paso Assoc. of Realtors Sharron Ramirez Hardware Specialties Jeff R. Paxton Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Home of Texas Mark Smiley Home Performance Testing Fernando Garcia/Ray Gonzales HUB International Luis Rosas Interceramic Tile & Stone Gallery David Holguin J & H Concrete & Post Tension Jorge Herrera James L. Ellis, CPA, PC Jim Ellis Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal L & P Building Supply Denise McConnell Legacy Real Estate Services /TTi Prop. Management. Patrick Tuttle Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Majestic Realtors Patti Musshorn MAK Roofing & Construction Felix Vizarreta Masco Contract Services dba Gale Insulation Tom Harmon McCoy's Building Supplies Jorge Martinez

Mechanical Technologies Jaime Zubiate Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen Neeuhome.com LLC Walter Pichardo New Era Foam George Tollen Passage Supply John Chaney Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Pioneer Bank Kathy Carrillo Post Tension Dennis Moore Powerfoam Insulation: Metlspan NCI Group, Inc. Arnie Pederson Randall Smith, CPA Randall Smith Real Estate Weekly Newspaper Riley Stephens Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Joan Swahlen Richman Group Affordable Housing Corp. Kevin Hoffman Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Art Smith Sarabias Blue Sanitation Monica Brown Senercon Javier Ruiz Sherwin Williams Paint Cruz Lopez Sierra Title Company/Lawyers Title Chris Morales; Angelique Roman Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing, LLC Ted Escobedo Solar Smart Living Larry Perea Southwest DĂŠcor El Paso Corporation Chris Matthews Spectrum Technologies Miled Daou Stewart Title of El Paso Cindy Bilbe StrucSure Home Warranty Scott Whisenant Su Casa Magazine Bob Skolnick Sun City Winnelson Dean Moore Texas Gas Services Mica Short Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos Vision Consultants, Inc. Kelly Sorenson WestStar Home Loans Sandy Matyi WestStar Bank David Osborn WestStar Title Janette Coon

Association News & Events

2017 Issue 3

13

Builders Outlook

If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com Connect to the El Paso Association of Builders: www.elpasobuilders.com

UPCOMING EVENTS

APRIL 12 BOARD MEETING 11:00 GENERAL MEETING 12:00 MARRIOTT HOTEL

APRIL 19 GOLF TORNAMENT VISTA HILLS CC APRIL 27 WASHER TOURNAMENT EPAB OFFICE MAY 29 FIRST HOME SATURDAY BASSETT PLACE

NEW MEMBERS

Barrett Airworks Contact: Alexandro Castro 10060 Railroad Dr. El Paso, TX 79924 915-591-8457

El Paso Star Ready-Mix Concrete, Inc. Contact: David Armendariz 117 S. Moon Rd. El Paso, TX 79927 915-860-8555 Rudolph Chevrolet Contact: Art Smith 5625 S. Desert Blvd. El Paso, TX 79932 915-544-4321

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teady em ployment demand , afforda and economic gro ble hom mortgage wth, pen e prices rates will gradual and attract t-up kee upw ive headwinds ard trend in 201 p the housing ma 6. Howeve rket on a rela ted and labor, to r, along with shortages and ava persistent impeding risin ilab ility of lots g materi a als prices to econom more robust rec are overy, acc ists who participate ording d in a Nat of Home Builders ional Association (NAHB) Constru ction For Fal ecastWebi l nar.

National

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Industry News 2015: Issu e 10

2016: H ous Recovery ing to pick up steam a challeng mid es

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So last year. from the 647,000 s producing pay lower wage will still production Single-fam units rates be s Meanwhile jobs. very afford low by historical will rise, they additional is projected to incre ily , home doubled standards able.� 27 perce since 2011 equity has nearl and units. nt in 2016 ase an $12.5 trillio y and now to 914,0 Supply n. stands at 00 On the multi Head “The singl family side, 354,000 e biggest Crowe notedwinds people’s produ units asse several ction last year, t in portfolio hindering 331,000 factors slightly abov ran at is the home most said Crow a level that e. “That’s NAHB survemore robust recov that are e the they own, level of primary production is considered a � ery. Citing y of its purchasers important beca normal builders expected . Multifamil sellers of reported members, 13 perce an same of new home use the to rise 9 y starts the existing labor was this year percent are nt s are homes. a significan cost and availabilit of that concerns regar to 387,0 and post The more the that conc 00 ding lots decline ratio shot y of t problem equity ern to 378,0 a modest 3 perce units in 2011 and 00 units Concerns up to 58 perce nt About one-fjumped to 61 percein 2011 and Residentia in 2016 nt in 2014 ifth of build nt in 2014 at 58 perce over building . forecasted l remodeling activ . mate . ers share nt amon ity is from 33 d the g builders rials stood over last to increase 6.8 percent in perce year 2014, up in 2011. nt in 2015 and rise No doub percent an addit in 2016. ional 6.1 ideas that t that the home brought really made together that much the show case home of actua more interesting lly . The proce Continue setting up piecing the walls d Page 6 together, ss the floor The annu a wall or and the al Fall Hom in the ceilin all that goes brought e and Gard the faint thousands g is not hearted. en show something on Judson of people Habitat Willia for for Hum “We were asked show kicke ms Conventio into the anity to by could from n donate people wered off October 9. Center as the could,� Torrethis build, and I’m what we The thron presented greeted by a proud that s told the the show very nicel gs of we Outlook. case was y producer show complimen waiting for quickly taken The rest of ts of the Show Tech Antonio. some nology out to a lot of the frame parts that of San could be The show waste. used so and other Over to showcase featured a spec showcase all a very beau not go to tacular tiful Metro Homhome by new build for years home that will conti green to come was made es. The design er member nue to give . of The Fall site in orderto be partially cons the display Home and show of Garden its establishe to meet the time tructed off some time, center was kind this year since was the only d lines that even for the show. taken over the civic Sam Shall � said Associate Bowling “I have to with that for s Chairman the enberger. Cham tell hustled additional Men’s and exhib to make time we you center turne pionship (ABC). itors and “We had new displ bring to sure we product really have.� the that was had complete d into a large bowl The civic to a nice thing ays what’s hot consumer beca with state CTU Metro show,� said Fern a great ing alley use I know The prese run into in the world ando Torre to said. situations of the art lanes nting attrac staged the Homes. Beautiful s of of walls,� Wizard, . “We center or like this tion was and elega Santos Brian Sant when the halls we Our since the show house became the Wall ntly demonstra os civic that can use are the favor winning and all the re thanks to CTU tions durin who did several the fit ite of Best of efforts. “I really Show for of Show our shows,� said only ones g the three “We are love Acosta Realsuppliers and the Metro Homes Tech excited Tommy coming off our mode so many to be able the Mantini flexible but nology. “We to El Paso day event. folks for of gratitude Estate. 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Fall Home and Garden Show attracts thousan ds

The Builders Outlook is the official publication of the El Paso Association of Builders. Our award winning monthly newspaper is the only publication to target El Paso home builders and related businesses. Widely distributed throughout the city and available to readers online, the Builders Outlook is an important advertising medium for any business that want to reach this valuable market.

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Builders Outlook

Expert Advice

Editor’s Note: Ruth Rivera from Bukaty Financial sent us this informative article that was published a couple of years ago. The El Paso Association of Builders Retirement Program can help you realize a specific customized program for you or your business. Contact Ms. Rivera at 512-796-1205.

By Karen Wittwer Tax qualified retirement plans run by small business owners must comply with ERISA— whether the sponsor is familiar with the landmark legislation or not. For the small business owner, offering a retirement plan can feel like the right thing to do. But helping employees provide for their financial future is merely one duty a small business owner takes on. According to professionals in the retirement field, most new sponsors of small or microplans are unaware of the critical duties of prudence, loyalty and diversification of investments that a fiduciary to a plan assumes under the Employee Retirement Income Security Act (ERISA). Many are also unclear that the individual making plan level decisions for a micro plan in essence becomes that plan's management committee under ERISA—meaning he must perform many of the same responsibilities as the more robust and experienced committee of a mega plan. How does an adviser best serve such clients, for whom the retirement plan is just another benefit to offer and not understood as the source of personal liability it potentially could be? A good place to start is coming to a better understanding of the client. The typical smallplan committee is indeed made up only of the company owner, says Jim Sampson, founder and managing principal of Cornerstone

When a Committee of One Runs a 401(k)

Retirement Advisors. “He’s probably the salesperson, the service person, the accounting person, the maintenance person. He may work 80, 90 hours a week, and the 401(k) is an afterthought.� Further, he is often “an owner who says, ‘I own this place, I’m just going to make the decisions.’� This arrangement may seem problematic, but it can actually be better for the company, as appointing other inexperienced employees to the plan committee exposes them to liability while accomplishing little, Sampson says. Many just rubberstamp the owner’s votes to avoid his displeasure. “One man, one vote� also quickens the management process, he says. Barring a formal voting process, the smallplan committee takes the same steps any committee would, he says. They will follow the terms of the IPS and review the funds periodically. “They will still have to determine standards for when they’ll make a change: What are the criteria? What’s the time frame? They should still follow that process, and still document it like any other company or committee would. Just because it’s an investment committee of one doesn’t mean it doesn’t have to be prudent and do its due diligence,� he says. More often than not, though, Sampson says, clients will say, “‘Hey, that’s what I hired you for.’� So communication around the basic tenants of the fiduciary duty remains important—as there are key limits to the amount of ERISA liability one can push off to a service provider, such as a fiduciary adviser. In general, many small businesses underestimate their fiduciary responsibility, he says. “They have the mindset: ‘Who’s going to bother me, with a plan that’s got only got a couple hundred thousand or a million dollars— they’re going after the big companies.’ There hasn’t been much to disprove that, but it only takes one.� Craig Howell, business development specialist institutional with Ubiquity Retirement + Savings, formerly The Online

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2017 Issue 3

401(k), agrees that many clients are oblivious to ERISA’s demands. Ubiquity sells 401(k) plans and individual retirement plans (IRAs), mainly targeting startup companies. The average client has about five through 20 mainly white-collar, often IT, professionals. This group is often Web savvy, but not investment savvy—and they are often uninterested in changing that. “We have to put some specific rails in place to help those folks,� he says. “Fiduciary responsibilities are part and parcel of offering a 401(k) plan. But there are simple measures a small business owner can take to limit liability.� He suggests starting with “the basics,� first instructing business owners that they are fiduciaries and broadly what that means, also that they should follow their plan document͞ purchase a fidelity bond against losses͞ and ensure all fees are reasonable.� Financial decisionmaking can and probably should be outsourced, though. Ubiquit advises hiring a 3(38) fiduciary manager to take on that function, freeing the owner to select and monitor the adviser, not the investments. The present time is especially favorable to engage a 3(38)’s services, Howell says. “Technology is enabling managers to deliver their services in a really efficient way so that pricing—at least from our perspective—is really being compressed, and there are some fantastic deals out there, relative to even just a few years ago,� he explains. Citing figures of 10 to 25 basis points (bps), he says, this “insurance� is really inexpensive and probably well worth the price in most instances. Jim Phillips, president of Retirement Resources, points to a void in formal communications—from either the Department of Labor (DOL), Internal Revenue Service (IRS) or vendors selling plan products—telling new 401(k) sponsors what ERISA’s demands are. Unless a vendor tells them, they may never hear it until they are blindsided by a plan audit, he says, adding that many smallplan sponsors are confused about their fiduciary role. When

opportunities arise, advisers can make a point to explain the facts. Phillips, for instance, discusses the topic at plan sponsor conferences and events. He, Sampson and Howell also recommend various free written resources such as the Department of Labor (DOL) website or T. Rowe Price’s guides on fiduciary compliance in running an ERISAgoverned plan. Classes, too, such as those through the Plan Sponsor University, can be found online and in local colleges. Sampson, an adjunct lecturer has taught four such classes, but only one small business owner has yet to attend. The free resources may suffice for daytoday compliance, but when facing a complicated question and the small committee is unsure of what to do, it should seek professional guidance. Even just “a limited engagement,� Phillips says, could prevent a misunderstanding from becoming a lawsuit. He also recommends shortterm contracting with a good adviser “to build the plan governance, maybe a charter and an IPS, a compliance calendar, and provide them some training on how to fulfill their fiduciary duties and make suggestions for how to get better ultimate outcomes for participants.� This trial relationship might become long term when the owner discovers the benefits. “Besides avoiding trouble, if a plan is run more efficiently and is a better plan throughout, if the investments are more accessible, [this can increase assets in the plan,] which also benefits the employer,� he says. Such relationships often do build and develop. “I find these folks great to work with, because they put a lot of trust in us—because they don’t have time to do it themselves or the experience,� Sampson says. “It goes back to ‘that’s what I hired you for—just do it.’ Not to mention that committee membership is stable. “We’re not dealing with a new committee member who wants to bring in his guy every three years or year and a half,� he says.

Builders Outlook 2017 Issue 2 6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

■ExECuTiVE OFFiCERS PRESiDENT Don Rassette ViCE PRESiDENT Edmundo Dena SECRETARY/TREASuRER Sergio Cuartas ASSOCiATES ViCE PRESiDENT Sam Shallenberger ExECuTiVE ViCE PRESiDENT Ray Adauto PAST PRESiDENT Carlos Villalobos

■TAB STATE DiRECTORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena

Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel

Finance Committee Kathy Carrillo Henry Tinajero

■ADViSORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr ■BOARD OF DiRECTORS

Metro Homes West Star Bank Firth, Johnston,Bunn & Kerr Employer Benefits Ep Passage Supply Dorney Security Pioneer Bank Hunt Companies Bella Homes/Custom Dream TRE & Associates Homes By Design Southwest Land Dev. Services Dawco Builders Bella Vista Custom Homes Cullers Homes Icon Custom Homes DRE Development Snappy Publishing Legacy Real Estate Services Lone Star Title Hub International Deal -2-Deal Homes Pacifica Homes

 

 

 

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Past Presidents Committed to Serve Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling Iv Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling Iii Pat Woods

EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization. © 2017 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC ted@snappypublishing.com El Paso • Texas • 915-820-2800

2016 Builder Member Of The Year Carlos Villalobos Pointe Homes  

772-7495

â– NATiONAL DiRECTORS Bobby Bowling, IV Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate

â– COMMiTTEE CHAiRS Membership Ted Escobedo Patrick Tuttle

Fernando Torres Henry Tinajero Jay Kerr Joe Bernal John Chaney John Dorney Kathy Carrillo Kathy Parry Leti Navarette Linda Troncoso Leslie Driggers-Hoard Robert Foster Walter Lujan Edgar Garcia Jason Cullers Samira Gonzaelz Sal Masoud Ted Escobedo Patrick Tuttle Sam Trimble Luis Rosas Delton Deal J. J. Vasquez

El Paso Disposal

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